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operations

Areas of Operation

Reef sponsored entities currently own an interest in approximately 3,000 wells in the United States. Our activities are located in 15 states with our core areas concentrated in the Bakken-Three Forks formations in North Dakota, the Permian Basin in West Texas and the Mid-continent.

Reef's strategy is to make acquisitions of oil and gas producing properties with upside development potential. Characteristics of these properties include: predictable reserves, slow depletion rates, significant margin between revenues and operating expenses, and tax benefits.

Within the last few years, Reef has taken advantage of several opportunities to make successful acquisitions in the Bakken-Three Forks. Choosing Reef as your partner means choosing a company that has a solid history and deep understanding of one of the most active unconventional plays in the U.S. Reef’s expertise in the Bakken-Three Forks is backed by our current activity, which includes managing partnerships that:

  • Own interests in more than 500,000 gross acres
  • Own interests in more than 730 producing wells
  • Participated in the drilling of more than 375 wells since 2011
  • Own interests in more than 1,400 new locations expected to be drilled within the next five years.

Evaluating Properties

Our geological and engineering staff reviews prospects from a diverse number of geographical regions in the continental United States with a focus on the Bakken-Three Forks area in North Dakota, the Permian Basin in Texas and New Mexico and the Mid-Continent Region in Texas and Oklahoma. We will evaluate all prospective acquisitions on the basis of their oil and natural gas producing potential, the predictability of their drilling and completion costs and their access to readily available pipeline hookups, among other criteria.

Perhaps the most critical stage in ensuring a sound acquisition is rigorously examining all attributes of a property. Key screening criteria in determining a property's oil and natural gas producing potential are:

  • Production history
  • Life expectancy
  • Level of diversification
  • Growth potential
  • Operations.

In order to thoroughly analyze all of these factors, Reef practices a standard evaluation method to ensure it includes prospects of the highest quality in its income funds.

Technology

Reef partners with major operators in the Bakken-Three Forks to utilize the latest in drilling technology to reduce dry hole risk and increase the likelihood of drilling productive wells. Many of Reef’s wells today utilize horizontal drilling technology and are currently being drilled with 28-42 fracture stages. Within five years, U.S. oil production is expected to increase 20% because of multi-stage fracturing technology.

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The Bakken Formation

The Bakken-Three Forks formations is rapidly emerging as potentially the largest contiguous deposit of oil and natural gas ever surveyed by the U.S. Geological Survey (USGS) in the United States and encompasses approximately 125,000 square miles (80,000,000 acres) in North Dakota, Montana and parts of Canada.


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